SkyWater Technology’s Quarterly Results: Mixed Prospects Ahead
Last week, SkyWater Technology, Inc. (NASDAQ: SKYT) reported its quarterly financial results, showcasing a revenue alignment with analyst forecasts at US$61 million. Notably, the company’s losses were 12% lower than anticipated, amounting to US$0.15 per share. In light of these results, analysts have revised their earnings models, leading to varying sentiments about the company’s future.
For 2025, consensus among five analysts estimates revenues will decline to US$302.8 million, a 6.5% decrease from previous forecasts, with expected losses increasing by 46% to US$0.26 per share—previously projected at US$0.30. Although the decrease in revenue estimates is discouraging, the reduction in loss forecasts suggests a more optimistic long-term view of the company’s profitability potential.
The consensus price target for SkyWater Technology has also seen a decline, dropping 6.3% to US$11.80. Opinions among analysts differ widely, with the most bullish target at US$15.00 and the most bearish at US$8.00, reflecting a range of investor perceptions about the company’s valuation.
Comparatively, while SkyWater Technology is expected to experience a revenue annualized decline of 8.6% by the end of 2025, the wider industry anticipates growth of 16% per year. This stark contrast indicates that SkyWater may struggle compared to its peers, suggesting potential challenges ahead.
Analysts have not altered their forecasts for upcoming losses, and the reduction in revenue estimates signals a pessimistic outlook for the company’s intrinsic value. Investors are encouraged to consider the long-term profitability over short-term profits while being mindful of three identified warning signs for SkyWater Technology.
With these insights, SkyWater Technology remains a topic of interest for investors navigating its fluctuating landscape.
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